Turkey is one of the most promising real estate markets in Europe offering huge opportunities for investors by virtue of the combination of an advanced construction sector with developed commercial and industrial productivity.
This observation leads us to affirm that such an active and operating sector deserve to be evaluated continuously so we can always estimate an outlook of this field’s evolution in the future.
So, let’s take a look past to the previous 5 years and make an overview of Turkish real estate market’s progression so far.
A lot of factors and circumstances has contributed to make Turkish real estate market very attractive and appealing. In fact, the strategical location of the country being between Europe, Central Asia and Middle East and its multicultural society made Turkey familiar to different communities which encourages them to settle down and to invest in Turkey.
Residential sales recorded 6,6 million units with 137,869 of them (about 25%) sold to foreigners in the period between September 2014 and September 2019. Actually, residential sales to foreigners grew regularly since 2012 especially after the statement of the relative laws facilitating foreign purchase pf properties in Turkey. However, it showed its best record in 2018 with 1.4 million sold units.
This progress keeps going with the same flow in spite of the stagnation seen in the March-April period of this year. In fact, sales reached 718,570 units in the first 8 month of this year.
Istanbul, the top choice of foreign buyers
Although Turkish real estate market has witnessed an effective activity in many cities all over the country, Istanbul comes in top of the list with 1.2 million residential units sold during the last 5 years, followed by Ankara, Izmir, Antalya and Bursa with the following sales respectively:
- Ankara 691,494 sold units
- Izmir 387,614 sold units
- Antalya 307,764 sold units
- Bursa 253,569 sold units
An effective sale in the last 5 years with a peak in 2018
Residential sales to foreigners hit a remarkable rate between September 2014 and September 2019 with the highest level registered in 2018. 137,869 transactions were accomplished in the above stated period with 39,663 units sold only in 2018.
As always Istanbul came in top and covered 63.4 % of the total sales in the said period, about 52,247 sold units that 12,355 of them were concluded in the first 8 months of this year.
Multinational interest in the Turkish real estate market
A worldwide attraction has been noticed in Turkey from foreigners all over the world with the lead of certain nationalities rather than others.
In fact, Iraqis come in the first place with 24,020 units followed by Saudis with 12,011 units, Kuwaitis with 9012 units, Iranians with 8987 units and Russian with 8579 units, without excluding many other nationalities such as Afghans (6319), Germans (5273), British (4721), Azerbaijanis (4328) and Ukrainians (2654).
Foreign residential sales increased remarkably last year thanks to the adjustment of the Turkish law relative to the acquisition of Turkish Citizenship through real estate investment.
We should remind that the minimum value of investment to be eligible for Turkish Citizenship was reduced from $1 million to $250,000 in September 2018 which encouraged many investors to take advantage of this opportunity.